Philippine banks may have to push harder to convince companies to hedge their foreign exchange exposure as the war in Iran underscores the country’s vulnerability to geopolitical shocks, according to a central banker.

The conflict has led to a higher inflation rate, lower-than-target economic growth, a wider current account deficit and a risk to remittances, said Walter Wassmer, a member of the Bangko Sentral ng Pilipinas’ policymaking Monetary Board.